Many airlines may not survive recession

The chief executive of Aer Lingus expects only 15 of 30 European airlines to make it through the recession.

Travel Insurance News - 09/03/2009

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Dermot Mannion, the chief executive of the airline, made the comments when he met with the Irish transport minister, Noel Dempsey and the Aer Lingus chairman, Colm Barrington in December to discuss the most recent takeover bid for the airline by Ryanair.

The minutes of the 11 December meeting were made available by terms of the Freedom of Information Act. Mannion’s comments were in response to a claim by Ryanair that in the near future only three or four airlines would be left operating in Europe.

During the meeting, Barrington told the transport minister that the Irish government would be at risk of losing the €188 million it received from the sale of its Aer Lingus shares to Ryanair "in airport setbacks".

Barrington explained his comments, saying that the country’s airports would have only one remaining customer – Ryanair, and that the carrier has already indicated that it would not use Terminal 2 at Dublin Airport, now under construction.

In January, the transport minister rejected Ryanair’s offer, saying that it significantly undervalued Aer Lingus and that the merger would most likely be harmful to competition in the market.

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